Stein Hospice today informed its employees that it will be reducing its workforce by about 12 percent and reducing some of its non-core services to patients. The organization is projecting significant reductions in revenue due to scheduled Medicare funding cuts that affect the entire industry, as well as shorter lengths of stay for patients at some of its hospice facilities.
“Ninety percent of our funding comes from Medicare,” said Jan Bucholz, chief executive officer of Stein Hospice. “As a result, those reductions have a serious impact on our operating budget. Meanwhile, we currently are serving 17 percent fewer patients than we did last year, and most of that decline has been in the past few months.” She said that personnel costs make up about 60 percent of Stein’s annual budget.
“This was a very difficult decision, especially because of the impact it will have on our dedicated, hard-working employees,” Bucholz said. “We looked exhaustively at all options for reducing costs but, sadly, we had no choice but to reduce staff and adjust some service offerings to balance our budget.” Despite the challenges, she said, Stein Hospice remains committed to providing patients with the highest quality hospice care. The cuts do not impact core hospice services, which will remain at or above industry standards. Non-core service offerings that will be impacted include music, art therapy, massotherapy and personal care. In addition, salaries have been reduced for members of the management team and spending has been reduced for non-patient services.
“We are sorry economic conditions are forcing us to make this decision,” said Bucholz. “We are committed to providing comprehensive comfort, compassion and support for our patients during life’s final journey. That means making sure our services are available for every terminally ill patient who needs our care, not just today but for many years to come. We are taking every precaution to make these reductions in a way that will have minimal impact on our patients and their families.”
About Stein Hospice
Stein Hospice is a not-for-profit agency that has been caring for patients and families in Ohio for more than 30 years. The agency’s service area includes Erie, Huron, Ottawa, Sandusky, Seneca, Lorain and Brown counties.